Oil falls ahead of US inventories data

2021-11-23 14:33:14 GMT (Economies.com)
Oil falls ahead of US inventories data

Oil prices continued to fall as the US market opened on Tuesday, resuming losses after yesterday's recovery attempts from an 8-week low, after news that the US, China, Japan and India are planning to tap their fuel reserves to reduce energy prices, ahead of preliminary data on the US crude inventories.

 

US crude fell 1.5% to $75.32 a barrel, after opening at $76.44, and hit a high at $76.57, and Brent crude fell more than 1.2% to $78.58 a barrel, after opening at $79.51, and hit a high at $79.61.

 

US crude gained 1.1% yesterday after hitting an 8-week low at $74.79, and Brent crude rose 1.3% after hitting the lowest since October 1st at $77.62.

 

A source in the US administration said that the US is expected to announce today its decision to tap its strategic stockpile, within a plan with major Asian countries.

 

The OPEC Plus alliance is also expected to adjust its oil output policy if the large consuming countries continued with this plan.

 

This comes as the global demand may receive a new shock due to a fourth wave of the coronavirus infections in Europe.

 

Austria has become the first European country to re-impose a complete lockdown to curb the spread of the Covid-19 virus, which has renewed fears over the pandemic, and threatens to slowdown the economic recovery and fuel demand.

 

Europe's largest economy, Germany, has warned that it may need a full national lockdown to limit the spread of the fourth Covid-19 wave.

 

The American Petroleum Institute will release its preliminary report on the US crude inventories, amid the US Energy Information Administration will release the official data on Wednesday.

 
 
 
  Symbol Last Change Chg.%
1.1292
0.0049
0.4339%
1.3338
-0.0068
0.5042%
Tadawul
11299.45
-68.73
0.60%
23.648
-0.839
3.428%
74.176
-1.674
2.207%
77.55
-4.71
5.73%
1808.835
-9.000
0.495%
 
 
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